Strategic

Human Resource Management

 Strategy

 What is meant by strategy?

 Impacts of strategies on objectives??
 Reasons for success or failure of strategies.
 Examples of organizational strategies???
 Real life examples???
 WHY
Without strategy
an organization is
like a ship without rudder,
going around in circles,
it’s like a tramp
it has no place to go.
Joel Ross and Michael kami
THE STRATEGIC MANAGEMENT
 The strategic management process consist of
three stages:
 STRATEGY FORMULATION- Developing business
mission, identifying opportunities and threats,
determining strengths and weaknesses, establishing
long term objectives, generating alternative strategies
and choosing particular strategies to pursue.
 STRATEGY IMPLEMENTATION- Action stage--
mobilizing employees and managers to put strategies
into actions.
 STRATEGY EVALUATION— Information about results
vs. Targets.
 STRATEGY

 STRATEGY IS :
 PLAN,
 POLICY,
 APPROACH,
 TACTIC,
 LINE OF ACTION,
 SCHEME
CONCEPT OF STRATEGY

 Strategy drives as a military term- The art of

projecting & directing the larger military
movements and operations of a compaign.
 It involves the use of formal & systematic design
techniques, is quantified and extrernally focused
, concentrate on long term plans, without being
much concerned with implementation and more
or less ignore the human element.
CONCEPT OF HUMAN
RESOURCES
 A strategic & coherent approach to the
management of an organization’s most
valued assets-the people , who contribute
to the achievement of organizational
objectives.
Human Resource Management

 Human Resource Management (HRM)

 Activities that managers engage in to attract and
retain employees and to ensure that they perform
at a high level and contribute to the
accomplishment of organizational goals.
 HRM activities
 Recruitment and selection
 Training and development
 Performance appraisal and feedback
 Pay and benefits
 Labor relations
Strategic Human Resource
Management
 Strategic Human Resource Management
 The process by which managers design the
components of a human resource system to be
consistent with each other, with other elements of
organizational structure, and with the
organization’s strategy and goals.
 The objective of strategic HRM is the
development of an HRM system that enhances
the organization’s efficiency, quality, innovation,
and responsiveness to customers.
HUMAN RESOURCES
INVESTMENT CONSIDERATIONS
 Management values.
 Risk and return on HR investment.
 Economic rationale for investment in
training.
 Utility theory.
 Outsourcing.
 An Investment Prospective of Human
Resource Management
 HRM practitioners & Scholars have long advocated that HR
should be viewed from investment prospective.
 Current practices indicate employees as valuable
investment but still some organizations view employees as
variable cost and their is little recognition about employees
training & development, recruitment & replacement cost.
 Investment only in physical resources does not give
organizations a competitive edge as systems, processes
can be duplicated, cloned or reversed engineered.
 Maintainable edge / advantage drives from the level of skills
of employees, their knowledge and capabilities.
 An Investment Prospective of Human
Resource Management
 Management scholar Edward Lawler described
investment in Human Resources as:
 “To be competitive , organizations in many industries must have
highly skilled and knowledgeable workforce. They must also
have a relatively stable labour force since employee turnover
works directly against obtaining the kind of coordination and
organizational learning that leads to fast response and high
quality products and services.”
 Due to forecast of shifts in skills need from manual to cerebral
(intellectual) , investment for enhancing employees knowledge
& skills become more important.
INVESTMENT IN TRAINING &
DEVELOPMENT
 Investment in employability.
 (training, internship, higher level exposure,
learning environment, multi- skilling & growth
opportunities etc. which makes employees more
employable.
 Investment in training.
 For future strategies and competitive advantage
investment in employees training and
development to enhance skills to face rapid
technological changes.
INVESTMENT IN TRAINING &
DEVELOPMENT
 On job training..
 Investment in management development.
 Prevention of skills obsolescence.
 Reduction in career plateauing.
(stagnation)
Investment practices for improved
retention
 Organizational culture emphasizing
interpersonal relationship values.
 Effective selection procedures.
 Compensation and benefits.
 Job enrichment and job satisfaction.
 Practices providing work life balance.
 Organizational direction creating confidence in the
future.
 Retention of technical employees.
 Other practices in facilitating retention.
Investment in job secure workforce
 Employment security/ job guarantee.
 Recognition of the cost of downsizing and lay-offs.
 Avoiding business cycle-based lay-offs.
 Alternatives to lay offs.
 Redeployment.

 Curtailment of sub contracts.

 Reassignment of work to company employees.

 Pay cuts.

 Paid / unpaid leaves.

 Ethical implications of employment practices

 Non traditional investment approaches.
 Investment in disabled employees.

 Investment in employee health.

 Countercyclical hiring .-keeping highly technical / skilled for future

use when company will have normal operations– bhatta
business.
THANK YOU